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Broadcasting Decision CRTC 2006-206
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Ottawa, 2 June 2006 |
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Shaw Cablesystems (SBC) Ltd.
New Westminster and Whiterock, British Columbia |
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Shaw Cablesystems (SSK) Limited
Prince Albert and Saskatoon, Saskatchewan |
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Prairie Co-Ax T.V. Limited
Moose Jaw, Saskatchewan |
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Videon Cablesystems Inc.
Edmonton, High River and Okotoks, Alberta; and Headingley, Selkirk
and Winnipeg, Manitoba |
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Shaw Cablesystems Limited
Agassiz, Burnaby, Castlegar, Chilliwack, Coquitlam, Courtenay,
Cranbrook, Creston, Duncan, Invermere, Kamloops, Kelowna, Langford,
Lions Bay, Nanaimo, Nanoose Bay, Parksville, Penticton, Port Alberni,
Prince George, Saanich, Vancouver (2 licences), Vernon and Victoria,
British Columbia; Calgary, Edmonton, Fort McMurray, Lethbridge, Medicine
Hat and Red Deer, Alberta; Sault Ste. Marie and Thunder Bay, Ontario |
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Shaw Cablesystems (SMB) Limited
Winnipeg, Manitoba |
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Application 2005-0951-5
Broadcasting Public Notice CRTC 2005-102
16 November 2005 |
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Licence amendment to replace condition of licence relating to the
use of local availabilities in non-Canadian satellite services
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1. |
The Commission received an application by
Shaw Communications Inc. (Shaw), on behalf of six of its wholly owned
subsidiaries, namely Shaw Cablesystems (SBC) Ltd., Shaw Cablesystems (SSK)
Limited, Prairie Co-Ax T.V. Limited, Videon Cablesystems Inc., Shaw
Cablesystems Limited and Shaw Cablesystems (SMB) Limited, to amend the
broadcasting licences of the cable broadcasting distribution
undertakings (BDUs) serving the above-mentioned locations. Specifically,
Shaw requested that the Commission replace the condition of licence
applicable to these BDUs relating to the use of local availabilities,
which currently reads: |
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The licensee may, at its option, insert certain promotional
material as a substitute for the "local availabilities" (i.e.
non-Canadian advertising material) of non-Canadian satellite
services. At least 75% of these local availabilities must be made
available for use by licensed Canadian programming services for the
promotion of their respective services, for the promotion of the
community channel and for unpaid Canadian public service
announcements. A maximum of 25% of the commercial availabilities may
be made available for the promotion of discretionary programming
services and packages, customer service information, channel
realignments, cable FM service and additional cable outlets.
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with the following condition of licence:
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The licensee may, at its option, insert certain promotional
material as a substitute for the "local availabilities" (i.e.
non-Canadian advertising material) of non-Canadian satellite services.
At least 75% of these local availabilities must be made available for
use by licensed Canadian programming services for the promotion of
their respective services, for the promotion of the community channel
and for unpaid Canadian public service announcements. A maximum of 25%
of the local availabilities may be used to promote cable services
related to programming, such as discretionary programming packages or
cable FM services, to provide customer service information, and to
promote non-programming services, such as Internet and local
telephony. [emphasis added]
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2. |
Shaw’s request is essentially the same
as those contained in two other applications that are the subject
of decisions issued today, namely Broadcasting Decisions CRTC 2006-205
and 2006-207 (Decision 2006-205
and Decision 2006-207), both also entitled
Licence amendment to replace condition of licence relating to the
use of local availabilities in non-Canadian satellite services.
Decision 2006-205 deals with an application
by Rogers Cable Communications Inc. in respect of some 71 BDUs in
Ontario, New Brunswick and Newfoundland and Labrador. Decision 2006-207
deals with an application by Bragg Communications Incorporated, on
behalf of itself and four wholly owned subsidiaries, the operators
of some 14 BDUs in Nova Scotia and Prince Edward Island, all carrying
on business as Eastlink. |
3. |
Six parties filed interventions to two of
the applications, and four parties intervened to all three applications.
The interveners fell into one or another of three groups. Two incumbent
cable operators and the Canadian Cable Telecommunications Association
were in support of the applications, two programmers and the Canadian
Association of Broadcasters also supported the applications, but with
certain qualifications, and the Association of Canadian Advertisers and
three incumbent local exchange carriers (ILECs) either opposed the
applications or submitted comments stating, among other things, that,
should the Commission approve the applications, it should also act
quickly to remove marketing restrictions that apply to the promotion of
telecommunications services by ILECs. |
4. |
The views of the three applicants and of
the six interveners regarding the proposed use of local availabilities
to promote non-programming services, such as Internet and local telephony,
are discussed in Promotion of non-programming services using local
availabilities, Broadcasting Public Notice CRTC 2006-69
of today’s date (Public Notice 2006-69).
In that notice, the Commission sets out its conclusion, based on its
analysis of the arguments presented in those applications and interventions,
that it is appropriate to update its policy with respect to the use
of local availabilities to permit BDUs to use these availabilities
to promote non-programming services, subject to certain conditions. |
5. |
Specifically, the Commission has concluded
that BDUs that seek and receive amendments to their conditions of
licence so as to use local availabilities for this purpose will be
authorized to use a maximum of 25% of local availabilities for the
promotion of discretionary programming services and packages, customer
service information, channel realignments, cable FM service, additional
cable outlets and non-programming services, including Internet and
telephone services. |
6. |
In Public Notice 2006-69,
the Commission added that the promotion of non-programming services
in local availabilities should generally be limited to those non-programming
services that are made available in conjunction with programming services,
and that are offered by the BDU, by an affiliated company or by a
third party pursuant to a marketing arrangement with the BDU. The
Commission noted that, should a complaint arise, BDUs should ensure
that they are in a position to provide, at the Commission’s request,
a report with respect to their use of local availabilities. With respect
to the costs of broadcasting promotions in local availabilities, the
Commission reiterated that BDUs may only charge Canadian programming
services their share of the direct costs associated with the insertion
of their promotional material in local availabilities. |
7. |
Consistent with the Commission’s updated
policy regarding the use of local availabilities, the Commission
approves the application by Shaw, on behalf of its wholly owned
subsidiaries named above, and amends the licences for the cable BDUs
serving the above-mentioned locations by replacing the existing
condition of licence relating to the use of local availabilities with
the following condition of licence: |
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The licensee may, at its option, insert certain promotional
material as a substitute for the "local availabilities" (i.e.
non-Canadian advertising material) of non-Canadian satellite services.
At least 75% of these local availabilities must be made available for
use by licensed Canadian programming services for the promotion of
their respective services, for the promotion of the community channel
and for unpaid Canadian public service announcements. A maximum of 25%
of the local availabilities may be used to provide subscribers with
information regarding customer service and channel realignments, and
for the promotion of discretionary programming services and packages,
cable FM service, additional cable outlets and non-programming
services, including Internet and telephone services.
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Secretary General |
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This decision is to be appended to each
licence. It is available in alternative format upon request, and may
also be examined in PDF format or in
HTML at the following Internet site: http://www.crtc.gc.ca
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Date Modified: 2006-06-02 |